CBDT amendsIT rules to omit the word accountant |Chartered Accountants : CBDT has amended rule 11U andrule 11UA to omit the word accountant [Chartered Accountants]

MINISTRY OF FINANCE

(Department of Revenue)

(Central Board of Direct Taxes)

NOTIFICATION

New Delhi, the 24th May, 2018

INCOME-TAX

S.O. 2087(E).In exercise of the powers conferred by sub-section (2) of section 56 read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:

1. (1) These rules may be called the Income-tax (6^th Amendment), Rules,

(2) They shall come into force from the date of their publication in the Official Gazette.

2. In the Income-tax Rules, 1962 (hereinafter referred to as the principal rules), in rule 11U, clause (a) shall be omitted.
3. In the principal rules, in rule 11UA, in sub-rule (2), in clause (b), the words or an accountant shall be omitted.

[Notification No. 23/2018/F. No.370142/5/2018-TPL]

PRAVIN RAWAL, Dir. (Tax Policy and Legislation)

Note.- The principal rules were published in the Gazette of India, Extraordinary, Part-II, Section 3, Sub-section (ii) vide notification number S.O.969(E), dated the 26^th March, 1962 and last amended by the Income-tax (Fifth Amendment) Rules, 2018, vide notification number S.O. 1558 (E), dated 11^th April, 2018.

Authors Interpretation
Basically as per clause (b) of sub-rule (2) of rule 11UA, the fair market value of unquoted shares and securities other than equity shares in a company which are not listed in any recognized stock exchange shall be estimated to be price it would fetch if sold in the open market on the valuation date and the assessee may obtain a report from a merchant banker or a Chartered Accountant in respect of which such valuation.
[Rule 11UA, sub-rule (2) clause (b) read withrule 11U, clause (a)]
The word Account has been omitted by Notification NumberS.O. 2087(E). which means aChartered Accountant is no more the person eligible for doing this valuation.
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